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Friday, June 9, 2017

The Suspense over the allowance of the central govt. employees continues

The suspense that has been running for long periods on the employees' allowance of the Central Government, is still going on. The union cabinet did not talk about this issue in the meeting on Thursday. The issue of union workers' allowances was not the agenda of cabinet meeting, where the final decision was expected in this case.

The talk of the central worker's allowance is likely to be the agenda of the next cabinet meeting. The approval of the new allowance is already pending. Although, PM Modi had given instructions to settle this matter quickly.

The 7th Pay Commission has to implement the new rules. The Central Government employees have been waiting for a long time to implement the rules. Pay, pension and the issues related to pay panel recommendations were implemented in June last year. As far as the allowance is concerned, it is still being given at 6th Pay Commission's old rates.

The cabinet has continued the pension given on the basis of the recommendations of the Ministry of Defense. 3 para matrix has been continued for the security forces. The cabinet has cleared the change in the process of pre-2016 pensioners and family pensioners. Only these changes have increased the burden of 1.76 lakh crore on the public exchequer.

The 7th Central Pay Commission suggested some changes in the structure of allowance. In this, 52 such allowances have been abolished. Other types of 36 such allowances have also been added to it.

Learn about 10 special things related to dearness allowance in the 7th Pay Commission's recommendations:

1. According to the Central Government formula, dearness allowance will be increased by 2 percent, which will be implemented from January 1, 2017.

2. Employees’ Unions believe that to determine the dearness allowance, the consumer price index for the consumer worker is considered to be benchmarked different from reality.

3. According to the union, CPI is a hypothetical figure because the Bureau of Labor Bureau remains away from reality.

4. To increase inflation, the average CPI figure should be 4.95%, which should be considered as January 1 to December 31, 2017 benchmark.

5. The Central Government has increased the dearness allowance by 2 per cent in October and implemented it since July 2016, which is going to increase it by 2 per cent now. The Central Government determines the dearness allowance of the average retail inflation of last 12 months.

6. After the approval of the recommendations of the Pay Commission, the Central Government had announced that all the employees would get increased salaries and allowances from January 1, 2016 but after the ban was imposed, the Central Government was reluctant to take a final decision on this issue. .

7. After taking a decision on the ban, the Modi government has constituted a committee to look into the recommendations of the Pay Commission on the allowances of Central employees. This committee has been asked to decide on the way to implement the recommendations of the Pay Commission.

8. According to sources, the committee headed by Ashok Lavasa has submitted its report to the government. But the central government is not able to pay the employees a allowance because the ban on cash in the country is also troubling the central government due to the ban on the ban.

9. The seventh pay commission has increased the HRA by 138.71 percent and has proposed to increase 49.79 percent in other allowances. During the last few months, union government employees' union is pressurizing the Finance Ministry to make the earliest payments. The staff union is talking about the strike on its demand.

10. After the Election Commission's instructions and the election process in 5 states, the Central Government can not take any decision on the allowance of employees. Therefore, it is expected that now there is no option but to wait until the Central staff wait till the election process is over.


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